It's definition is subjective to some great extent because its effectiveness depends on the way the majority of traders draw them. About how to drawn on fib retirements in theory one could go on and on but in the long run it is the consensus of world traders who defines their appliion that is correct.Originally Posted by ;
That is one reason why I wouldn't trade them on their own (like I wouldn't use MAs by themselves either).However, they might add that additional technical credence into a trade setup which may convince me to pull the trigger, once I would not. Seasoned traders on this forum also look at fibs from various TFs.
Btw, this also relates to the inaccuracy inherent in drawing on diagonal trend lines, which I wouldn't trade as is .